About Government/Agency Bonds

Overview

One of the world’s largest and most liquid bond markets is comprised of debt securities issued by the U.S. Treasury, by U.S. government agencies and by U.S government-sponsored enterprises. U.S. Treasury securities, used to finance the federal government debt, are also considered to have the bond market’s lowest risk because they are guaranteed by the U.S. government’s “full faith and credit” or, in other words, its taxing authority. Government agencies and government-sponsored enterprises such as Ginnie Mae, Fannie Mae and Freddie Mac also issue debt to support their role in financing mortgages.

Use this section to learn more about:

The different types of U.S. government and agency securities

The advantages and risks of investing in Treasuries and government securities